Enterprise Resource Planning (ERP) is about managing and integrating the most important aspects of business like accounting, marketing, and sales. ERP is beneficial since it provides a good overall view of your organization and improves the integration of different business functions. So, virtually all businesses benefit from having some level of ERP, but SaaS companies should especially prioritize ERP. SaaS businesses experience unique challenges from being small internet-based companies that don’t follow conventional business models. So today, we’re going to explore the best ERP solutions for SaaS companies to boost your business.
Why do SaaS companies need a quality ERP solution?
SaaS businesses have a unique cloud-based infrastructure, with most having small dedicated teams instead of large departments. As a result, SaaS businesses need to optimize their management to maintain profitability. One of the most critical problems for SaaS companies is building a profitable business model.
SaaS business operations are technology and data-heavy, so you can’t reasonably work with disjointed departments that don’t cooperate. All your major business questions like ‘what subscription plan should I launch?’ or How much do I charge per account?’ are all at least partly affected by how well the company runs.
A good ERP solution will eliminate most of your business’s inefficiencies and give you a better overall perspective of your business. A good ERP results in a better business with a better business model.
The ideal ERP Solution
The ideal ERP solution for you will vary depending on your requirements. Ideally, you want a system that addresses all of your specific needs. Generally, a suitable ERP solution has a streamlined user interface that covers core business aspects, like:
5. Customer Support
The right ERP solution will make running your business easier and save you money. So, it would be best if you judged an ERP based entirely on how much it benefits you.
What are the best ERP Solutions?
These are the 5 best ERP solutions in 2023.
1. Oracle NetSuite
Many businesses consider Oracle NetSuite the world’s best ERP solution because of its ease of use. It’s currently used in over 200 countries by 24,000 customers. Oracle NetSuite is available in multiple languages and has real-time consolidation. It’s also the world’s only wholly cloud-based ERP solution, so you don’t have to download any software to use it.
Oracle NetSuite has a web-based application where its main management features, including accounting and HR, are available. While it’s generally user-friendly, Oracle NetSuite can be difficult to implement because it’s inflexible. So, it’s a good choice if you want a fast and multilingual ERP solution and don’t mind the initial learning curve with implementation.
2. SYSPRO ERP Solutions
Syspro is a veteran software developing company that’s been operating since 1978. It has an imposing reputation for its ERP system. Still, its main focus is distribution and manufacturing, which aren’t crucial for SaaS businesses.
Syspro still has a great ERP system that helps streamline business processes and reduce costs. Yet, one of the big problems with this system is that pulling data needs customization, and the system provides limited documentation.
As a result, Syspro is a good choice if you want a lean ERP system that improves productivity and reduces costs, and you don’t mind its limited documentation.
3. SAP Business ByDesign
SAP Business is partly cloud-based ERP for small to medium enterprises (SMEs). Its main feature is centralizing important workflows like finance and customer relationship management (CRM). It’s also compatible with third-party applications like Microsoft Teams.
SAP Business is also designed for marketing and marketing businesses, so it’s excellent for marketing-related SaaS businesses. The system has powerful marketing, sales, and service features that improve customer engagement.
One issue with SAP Business is that it has a complex user interface that’s difficult for new users. So, this is a suitable ERP solution for marketing-related SaaS businesses that have experience with complex user interfaces.
4. Microsoft Dynamics 365
Microsoft Dynamics 365 is software giant Microsoft’s ERP solution. Microsoft Dynamics 365 is a group of applications that provide ERP solutions. Microsoft designed its ERP to be compatible with any organization regardless of size. It’s also done an excellent job at improving communications across organizations.
But, Microsoft Dynamics 365 can be slow and complicated for some users. It’s also not very user-friendly. But, Microsoft has been improving it every year. Overall, it’s a good choice but not for beginners.
5. Sage Business Cloud X3
Sage Business Cloud X3 is a data-driven ERP solution that provides actionable data from your workflows to reduce costs and improve productivity. It also does an excellent job of automating functions like payroll and eCommerce.
While it’s a mostly cloud platform, Sage Business Cloud X3 has limits. For example, you get limited HR functions, and it has a difficult to navigate user interface. Also, its main focus is on inventory and supply chain management, which are mainly unimportant to SaaS businesses.
Sage Business Cloud X3 is a good choice if you want automation abilities and increased data insight.
Which ERP Solutions should I use?
Again, that ultimately depends on your needs. Your ERP solution should specifically meet your needs. The goal is to improve your business the most. Every ERP solution has its benefits and drawbacks, so you have to decide what you’re willing to forego.
For instance, if your focus is CRM, then SAP Business ByDesign is probably the right choice. If your main business problem is communication, then Microsoft Dynamics 365 would solve it best.
So, you should first decide what features you want the most. Next, identify the ERP solutions that provide those features. Afterward, compare the ERP solutions from the previous step and select the one that either gives you the best features or has the fewest drawbacks you’re willing to tolerate.
In conclusion, a disjointed SaaS business won’t have an efficient business model. Without an efficient business model, your SaaS business won’t perform well. An ERP solution is one of the best ways to fix that problem because it will integrate all essential business functions and improve your operating efficiency. But, you need to choose an ERP solution that addresses your business problems to be effective.